Covid-19 Pandemic and the Sudan’s Economy: Issues, Policy Recommendations with Focusing on Agricultural Exports “Evidences from Simultaneous Equation Model”

The objective of this study is to analyze the impact of Covid-19 Pandemic on various significant economic variables in Sudan with focusing on agricultural exports to address some policy recommendations; using evidences from Simultaneous Equation Model (SEM) together with co-integration test, covering the period from 1974-2019. The results show that an increasing of exports will lead to the increasing in economic growth and in both food production index and household consumption expenditure. However, an increasing of the food production index will lead to the increasing in both investments in agricultural lands and the household consumption expenditure, meaning that investment food production based on the comparative advantages of Sudan will increase food exports in light of COVID-19 pandemic, which leads to improving the economic conditions of the population and reducing poverty. The study recommended that policy makers should take on consideration the investment in the agricultural sector side by side with the oil and mining sectors, where by drawing up strategic plans, drawing effective policies, and establishing the necessary infrastructure development of the Sudan’s economy, so as it has huge and diverse potentials and resources that must be used optimally in the shadow of the COVID-19 pandemic in particular, thus, establishing the economic and political stability, construction valuable infrastructure and improvement production and promoting exports via bringing modern agricultural technology to contribute of increasing production and productivity, reducing costs and increasing competitiveness.